B.Com. III (Semester (Old CGPA) Examination, 2018
advanced Cost accounting (Paper II)
Day and Date Saturday, 8-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
Instructions All questions are compulsory.
Use of calculator is allowed.
1. Choose correct alternatives 14
In costing work is performed in accordance with customer's
orders and specification.
Marginal Process Job Operating
When it is difficult to estimate the cost contract or when the contract is
absolutely new to the contractor the contract is useful.
Sub contract Escalation clause
Cost plus None of these
If the value of work certified is ½ or more than ½ of the contract value, then
of the notional profit as reduced to the percentage of cash
received is credited to profit and loss account.
The contractee may impose on the contractor when there is
a delay in completion of the contract or there are defects in execution.
Interest Dividend Penalties Bonus
is that form of operation costing where standardised goods
are produced.
Operating costing Uniform costing
Process costing Service costing
less cannot be avoided and it is also non controllable.
Normal Specific Abnormal Revenue
arises due to rise in the efficiency of production department.
Abnormal gain Abnormal loss
Normal loss Normal profit
Under job costing system, each job is assigned one identifying job
Number Specification Costs Order
In contract costing, cost of the work of sub-contract is debited to
account.
Contract Contractor Contractee Normal loss
10) The method of costing used in undertakings like electricity, gas supply,
cinema house etc. is known as costing.
Operating Process Uniform Batch
11) The example of a composite cost unit in costing is a passenger km.
Operating Transport Batch Standard
12) loss may arise due to reasons like power failure or
inefficiency.
Normal Abnormal process
Actual Abnormal gain
13) is that portion of a basic raw material lost in processing,
having no recovery value.
Scrap Waste Abnormal loss Idle time
14) The use of several undertakings of the same costing principles and/or
practices is called
Standard costing Uniform costing
Methods of costing Marginal costing
2. Write short notes on any two 14
Features and areas of uniform costing.
Process loss.
Advantages of uniform costing.
3. From the following particulars prepare the cost sheet for Job No. 789 and find
out the value of the job.
Material issued for the job Rs. 6,000
Productive wages Rs. 4,600
Direct expenses Rs. 500
Provide 60% on productive wages for works on cost and 12½% on works cost
for office on cost. Profit to be realised on the selling price 15%. 7
City Bus Service Ltd. run the following fleet of buses within the limits of Delhi
city.
Carrying capacity
10 Buses 50 passengers
15 Buses 40 passengers
On an average, each bus makes 10 trips a day covering distance of 8 kms.
In each trip and 75% of the seats are occupied. The annual record shows
that 5 buses are generally required to kept away from road each day for
repairs.
Calculate effective passenger km. for the month of March 2017. 7
Set P
4. Submit quotation for a job which requires direct materials cost of Rs. 20,000,
Direct labour Rs. 25,000 and Direct factory expenses Rs. 5,000.
The job passes through three machines
Machine X for 10 hrs.
Machine Y for 20 hrs.
Machine Z for 5 hrs.
The machine hour rate for the three machine is Rs. 50, Rs. 60 and Rs. 100 per
hour respectively. Office overheads are 20% of prime cost, selling overheads
are 10% of cost of production. The producer intends to earn a profit of 20% on
the quotation price, prepare Job cost sheet. 14
OR
From the following data, find out in an appropriate cost sheet, from the generating
cost of electricity per unit in an iron and steel works during the month of April
2017.
Fuel
Cost at the beginning of the month -500 tonnes. Supply during the month
1,100 tonnes. Balance at the end of month 400 tonnes. Annual contract for
supply of coal at Rs. 10 per tonne. Add 10% to cover freight and handling
charges.
Oil 10 tonnes at Rs. 250 per tonne.
Water 50,000 liters, pumping charges at 25 paise per 100 liters.
Depreciation of steam boiler capital value Rs. 24,000 and rate of depreciation
12½ p.a.
Salaries and wages of the boiler house 10 men at Rs. 100 per month each.
40 coolies at Rs. 20 per month each.
Recovery on account of sale of ashes -100 tonnes at Re.1 per tonne.
Salaries and wages of the generating station 50 men at Rs. 100 per month
each. 20 coolies at Rs. 20 per month each.
Repairs and maintenance of the generating equipment Rs. 2,600.
Depreciation of Generating equipment-capital value Rs. 1,20,000 and the
rate of depreciation 12½% per annum.
Share of administration charges Rs. 1,750.
10) Number of units generated 1,46,000.
11) Loss in process 2000 units generated.
5. The following are the figures relating to process A and process B. Prepare
process cost accounts showing cost per ton of each process. There was no
stock of work in progress in any process. It is ascertained that in each process
normally of the total weight is lost and 10% is scrap which from process
A and B realises Rs. 80 per ton and Rs. 200 per ton respectively. 14
Particular Process A Process B
Materials in tons 1000 70
Cost of materials in rupees per ton 125 200
Wages in Rs. 28,000 10,000
Manufacturing Expenses Rs. 8,000 5,250
Output in tons 830 780
OR
The following is the summarised information relating to Contract No. 123.
Rs.
Contract price 6,00,000
Wages 1,64,000
General expenses 8,600
Raw material 1,20,000
Plant 20,000
As on date, cash received was Rs. 2,40,000 being 80% of work certified. The
value of materials remaining at site was Rs. 10,000. Depreciate plant by 10%.
Included in the above summarised information are wages Rs. 3,500 and other
expenses Rs. 2,500 incurred since certification. value of material used since
certification is Rs. 4,000.
Prepare the Contract account.